PAA to Acquire Bakken Oil Gathering and Transportation Assets

Plains All American Pipeline (PAA) has signed an agreement with Nexen Holdings to buy entities holding Bakken crude oil gathering and transportation assets.

The $210m deal includes $170m for the business and physical assets and $40m for 400,000 barrels of inventory and other working capital adjustments.

The assets, which are located in north-west North Dakota and north-east Montana, include a lease gathering business handling 55,000 barrels per day and the Robinson Lake pipeline.

The assets also cover a FERC-regulated 20 mile pipeline that handles 18,000 barrels per day, eight truck terminals and other contractual rights.

“The acquisition is in line with our strategy to expand and strengthen our presence in long-lived, growing producing regions, and is complementary to our existing Bakken area assets and activities, including the recently proposed Bakken North Pipeline Project,” said PAA president and COO Harry Pefanis.

The transaction is expected to close by the end of 2010.